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Determine the amount of the investment to be shown

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Question - On January 1, 2026, ABC purchased term bonds (to be held by collecting contractual cash flows representing principal and interest) with a face amount of P10M and stated interest at 12%. The stated interest is payable annually on December 31. The bonds are acquired to have an effective yield of 14%. The bonds mature on December 31, 2030. Determine the amount of the investment to be shown in the financial position statement on December 31, 2027, when the market value at the reporting period is P9,150,000. Use 4-decimal PVF and round off your final answer to the nearest peso.

Reference no: EM133030264

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